Sunday, May 3, 2015

Good Questions

Tyler Durden writes at Zero Hedge about 16 things pointing to a weak economy. I particularly like his no. 4:
#4 According to numbers that were just released by the Bureau of Labor Statistics, in one out of every five American families nobody has a job. So how in the world can the “unemployment rate” be sitting at “5.5 percent” when everyone is unemployed in 20 percent of all families in the United States? It doesn’t make any sense.
While I know the answer to this one, he is correct that it doesn't make sense. The difference is explained by the large number of people who have left the labor market, who neither work nor look for work.

Such individuals are not counted as "unemployed" although they do not work. They've either gotten Disability plus SNAP (food stamps) or some other forms of assistance that supports them, at some minimal level, without working. Durden's no. 5 is good, too:
#5 The rate of homeownership in the United States has just hit a brand new 25 year low. How can anyone claim that the middle class is “healthy” when the percentage of Americans that own a home is the lowest that it has been in more than two decades?
The only people who claim unemployement is low and the middle class is comfortable are the self-deluded President and his loyal claque.